Overview

• President Donald Trump’s tariff targets imported branded and patented medicines, with an exemption for manufacturers that have already begun building plants in the United States.
• Goldman Sachs says earnings effects on Indian pharma should be limited because most exporters sell generics, which account for the vast majority of U.S. prescriptions and are not covered.
• Sun Pharma stands out for exposure due to its U.S. specialty portfolio, which contributed roughly 17% of FY25 revenue and about $1.1 billion in sales, according to HSBC.
• Many of Sun’s patented products are currently made by overseas CDMOs, and shifting production to U.S. sites or its own American plants would require new capex or acquisitions and 6–24 months to execute.
• Goldman warns the policy overhang could weigh on Sun Pharma’s valuation until clarity improves, even as CDMO-related tariff pass-through may often rest with U.S. importers under FOB terms.